Newest

  • Fun Spades: Bridging Tradition and Innovation, A Journey Through Card Game Excellence

    Fun Spades rose as one of the leading forces in digital card gaming. With over millions of thousands of downloads, the app bridges tradition and innovation, offering diverse game modes, sleek interface, and social features. It celebrates the rich heritage of Spades while embracing modernity through updates and events. Looking ahead to 2024, the app's development team is gearing up for an exciting journey filled with innovative updates and features. As the realm of digital card gaming evolves, Fun Spades stands out as a captivating and intellectually stimulating choice for card game enthusiasts
  • 3X Upgrade! Meet with VOOPOO's New Super Pods ARGUS P2&G2

    VOOPOO, a leading innovator in the vaping industry, is delighted to introduce two new additions to its esteemed ARGUS Pod series - ARGUS P2 and ARGUS G2. The two new super pods come with a 3X upgrade, fully upgrading the user's vaping experience.
  • Powerful Tool in the Market - AXIS-VIP Account

    As time passes, we are quickly approaching the launch of the second phase of the Wealth Express program. Veenit Jindal, the CEO of the Asia-Pacific region at the U.S. Bancorp, after extensive market research and several rounds of negotiations, has finally selected AXIS as the brokerage firm for this collaboration. This decision will involve the public issuance of a certain number of VIP accounts. These accounts offer a range of powerful features, ensuring smooth sailing for the success of the Wealth Express program!
  • Wall Street's Indian Titan - Top Analyst Sanjay Patel

    Sanjay Patel was born in Surat.From an early age, Sanjay Patel demonstrated a strong interest in numbers and analysis. His father was an innovative teacher, and his mother was a social worker dedicated to improving the living conditions of the underprivileged.
  • Wall Street's Indian Titan - Top Analyst Sanjay Patel

    Sanjay Patel was born in Surat.From an early age, Sanjay Patel demonstrated a strong interest in numbers and analysis. His father was an innovative teacher, and his mother was a social worker dedicated to improving the living conditions of the underprivileged.
  • ISEKY Goddess Invitation NFT to be Listed on Xterio Platform, Offering Numerous Benefits

    As early as January 8th, ISEKY officially announced its entry into the Xterio platform and released a teaser video for its flagship product, ISEKY: Soul GPS. The video immediately captured the hearts of Web3 users. Within just one hour, a large number of participants flooded into ISEKY's Discord channel, and their enthusiasm even triggered Discord's protective measures, prompting ISEKY to temporarily halt new user registrations. Recently, ISEKY announced that the Goddess Invitation NFT will be listed on the Xterio platform on March 21st, once again attracting the attention of WEB3 users. Accor
  • A new giant on the global stage: ZIOPTO exchange reinvents digital trading

    ZIOPTO exchange, which has risen rapidly in the field of digital currency, recently announced its global expansion and diversification strategy. This strategy aims to further consolidate its position in the international market and promote global financial cooperation.
  • Trading innovation: ZIOPTO exchange user experience revolution

    ZIOPTO Exchange, an innovator in the field of cryptocurrency trading, recently launched a major upgrade to its user interface (UI), aiming to provide a more intuitive and easier-to-use trading experience. This upgrade marks ZIOPTO's in-depth understanding of customer needs and rapid response to market trends.
  • Powering Up Panel-Level Packaging! Capcon’s Die Bonder Wins Bulk Adoption by Internationally Leading IDM Giant

    Recently, Capcon’s large panel-level packaging die bonder,AvantGo L6 (Leo), has been adopted in bulk by an Internationally Leading IDM manufacturer and mass producer. It is believed that with the bulk application of AvantGo L6 by client, it will lead the panel-level packaging equipment towards maturity, laying a solid foundation for the development of the panel-level packaging industry and opening a new chapter of advanced packaging with low cost and high efficiency.
  • Wall Street's Indian Titan - Top Analyst Sanjay Patel

    Sanjay Patel was born in Surat.From an early age, Sanjay Patel demonstrated a strong interest in numbers and analysis. His father was an innovative teacher, and his mother was a social worker dedicated to improving the living conditions of the underprivileged.

Links

Coinbetter: The UST death spiral is approaching, where is the future of algorithmic stablecoins?

2022-05-11    

On May 10, Bitcoin accelerated its downward trend, falling below $30,000 at one point, and the lowest dropped to $29,767, a new low since July 19, 2021. As of writing, the price has rebounded, and the current price is $31,486.43.

 

 

In addition to the market, the algorithmic stable currency UST has won the attention of the market. On May 10, UST was seriously de-anchored and once fell to 0.6090 USDT; according to the Coinbetter data, it is now reported at 0.7968 USDT, with a 24H decline of 12.2%. LUNA once fell to 13.717 USDT, and is now at 16.151 USDT, with a decrease of 48.93% in 24H.

 

Coinbetter Research Institute: UST death spiral is the fuse of the 510 market decline

The de-pegging of the algorithmic stable currency UST led the Luna Foundation LFG to sell a large amount of BTC to save the market. The most direct impact of this was a drop in the price of BTC, which further caused market users to panic and sell BTC. BTC fell, LUNA fell, LUNA fell, UST continued to fall, and UST entered a death spiral!

 

In fact, stablecoin thunderstorms have occurred more than once in the history of the blockchain. In October 2018, USDT thundered for the first time. According to media reports at the time, the circulating market value of USDT was greater than the actual asset reserve, and the OTC price once fell to 4.5-5.0. A large number of USDT were sold and exchanged for BTC, which caused the BTC price to rise rapidly. Although USDT eventually returned to normal, BTC still fell below the 6K entering 3K started a long bear market.

 

5.11

 

LFG out of deposit, UST trust at stake

Coinbetter news, LFG's bitcoin address transferred 28,205.5 bitcoins again at 09:20:26 on May 10, and the balance of the address was 0 as of the time of writing. According to Coinbetter, the LFG bitcoin address first transferred 42,530 bitcoins and then 28,205 bitcoins in early May 10. After UST fell below $1, LFG announced that it would issue bitcoin and TerraUSD loans worth about $1.5 billion to help strengthen the peg to TerraUSD.

 

There are even more rumors that Jump, Alameda and other companies have provided another 2 billion US dollars to save UST. Regardless of whether this rumor is true or not, the spread still has positive significance for UST. The biggest problem is that even if they can get UST back to $1 by some kind of miracle, trust in luna has completely collapsed.

 

Coinbetter's latest news on May 11, according to The Block, citing three sources, reported that, The ecological nonprofit Luna Foundation Guard (LFG) is seeking institutions to raise more than $1 billion to support UST, and the deal is in talks.

 

Coinbetter Research Institute believes that the internal reason of the UST death spiral is that LFG's injection of funds into Anchor cannot solve the situation of Anchor's making ends meet.

UST is an algorithmic stable currency. LUNA absorbs the volatility of UST through arbitrage, but the peg mechanism of UST through arbitrage is also flawed. If the market fluctuates violently and the network is blocked, the arbitrage will be delayed and risky. Unlike over-collateralized stablecoins, whose value depends on market consensus, UST also supports its value through the market value of luna and the LFG reserve currency.

 

Anchor is a lending protocol on the Terra network, which provides depositors with an annualized return of about 20%. The generous return once gave UST a place in the algorithmic stablecoin sector. After development in 2021, the market value reached 16 billion US dollars . There are two sources of Anchor's income, one is the interest income paid by the borrower, and the other is the over-collateralization of the borrower when borrowing. Anchor will use the collateral to reinvest to obtain income. After budgeting, If Anchor continues to maintain a 20% APY, the annual loss will probably be about 1.7 billion US dollars. Continued losses will be a red flag for UST thunderstorms.

 

Therefore, LFG is a strong support for UST to maintain a high annualized income to the present. If Anchor wants to go on, LFG needs to continue to exert its strength. In order to enhance confidence in the market and reduce its own risks, LFG recently added BTC to its reserves. It is to endorse UST with BTC.

 

The development of algorithmic stablecoins has a tortuous road, where is the future?

Paradigm research partner Hasu tweeted yesterday: “No matter how this ends, I don't want people to call UST decentralized again. Even the little collateral backing it has is intransparent and controlled by a single party. Used to perform discretionary open market operations. This is like 10x worse than the Fed.”

 

 

During a May 10 United States congressional hearing, U.S. Treasury Secretary Yellen pointed to the UST’s missteps and called for new stablecoin legislation to be passed by the end of 2022.

 

Some people say that UST is an innovative experiment in the history of the development of algorithmic stablecoins, while others believe that UST is actually a Ponzi scheme. The current UST plummet can be said to be a dark moment in the history of UST development. Whether to fall down or make a comeback to lead the algorithmic stablecoin market forward, we find the answer from the crisis and growth history of UST.

Disclaimer: This article is reproduced from other media. The purpose of reprinting is to convey more information. It does not mean that this website agrees with its views and is responsible for its authenticity, and does not bear any legal responsibility. All resources on this site are collected on the Internet. The purpose of sharing is for everyone's learning and reference only. If there is copyright or intellectual property infringement, please leave us a message.
Back to top
©copyright 2009-2020 Personal Care Daily      Contact Us   SiteMap